The South African Poultry Association (SAPA) has urged the government to exclude chicken and its inputs from Value-Added Tax (VAT), which would bring critical relief to both consumers and producers. This action, according to SAPA, is critical to addressing the rising costs of production and distribution, which have had a substantial impact on the poultry business and, as a result, the affordability of chicken for South African consumers.
A number of challenges have faced the poultry business recently, including rising feed and energy costs and the unfavorable effects of avian influenza outbreaks. The culmination of these elements has raised the cost of producing chicken overall, making it more difficult for consumers to buy this essential protein source and for farmers to continue making a profit.
SAPA suggests that exempting poultry and its materials from VAT would offer necessary support to farmers and consumers. The decrease in production costs for farmers would allow them to invest in their businesses, enhance their competitiveness, and ultimately increase chicken production while lowering costs. By making chicken more affordable for consumers, it ensures that all South Africans, regardless of their income level, can continue to have access to it.
Furthermore, SAPA notes that the VAT exemption will benefit not only the poultry industry but also the overall economy. It would encourage job creation in the poultry and allied industries, increase consumer spending, and contribute to economic growth.
In addition to the VAT exemption, SAPA has urged the government to take steps to combat unlawful chicken imports. This strategy undercuts the local poultry business, disturbs fair competition, and costs South African jobs. By adopting action to reduce illicit imports, the government can level the playing field for local poultry producers and protect the livelihoods of thousands of South Africans who rely on this business.
The South African Poultry Association feels that exempting poultry and its inputs from VAT is an important step toward ensuring the poultry industry’s long-term viability and offering relief to farmers and consumers alike. By enacting this action, the government may assist in addressing the industry’s issues, stimulate economic growth, and ensure that chicken remains an inexpensive and accessible protein source for all South Africans.
